Byers' gaffe puts Blair on the spot

Tony Blair is under intense pressure today to come clean about his intentions over the euro after Stephen Byers blurted out plans to go ahead with a referendum on ditching the pound next year.

The Transport Secretary's unscheduled intervention enraged Gordon Brown, put the Prime Minister on the defensive and saw Mr Byers fighting yet again to save his career after a humiliating rebuff by Downing Street.

However, his comments followed on directly from Mr Blair's strongest suggestion to date that he was ready to lead a campaign for a "Yes" vote as early as next spring.

The row undermined the Government's efforts to focus on the fight against crime and the drive to improve schools and hospitals and sparked a new wave of internal Labour wrangling.

MPs waited to see the reaction of the Chancellor, the Cabinet's biggest sceptic about the euro and the man who must decide whether five key economic tests on joining have been met.

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